Pay off the mortgage - too big a risk?

[Shizaro]

I have a mortgage of around �34,000, with about 6 years left to pay it off (I overpay a lot at the minute each month), I now have enough savings (Just) to pay off the mortgage, and I am severely tempted to do just that. I would be able to get some savings in the bank quite quickly, but I would wipe out all my current savings. These are split between some ISA's and high interest accounts and 1 very poorly performing endowment.

Should I pay it off?

[janeo]

I would pay off all but �10,000 so you've still got an easily accessible "emergency fund". You can always pay off the rest in a year's time when you've saved some more money.

[strain]

I was in a similar position a few months ago. Yhen i remorgaged and bought another house as an investment!

If you are still paying interest you could move all your savings into an offset mortgage ( Ihad one with woolwich) . This meant every month the capital decreased considerable as there was no interest being paid on the loan. Your savings sit against the money you owe. (Like a see saw action) The money is accessbile at all times should the need arise to use it, however you will not receive interest on it but the way that interest rates are you will save more than you could ever earn on interest.

[WoWo]

To be honest with 6 years left to pay you would have only a small amount of interest being paid and a one account wouldn't be worth while IMO.

I think Janeo's advice is good, but personally I'd pay it off now.